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Costs In The Long-Run

Part one of term paper
Just as some costs are fixed and others are variable so are the inputs, or resources, or, factors of production used by the firm and this has an impact on its short and long run operations. These time periods (the short and the long run) do not refer to specific, chronological time of hours, days, weeks, months or years. Rather they are per ...

Part two of term paper
... 5 men to work with it, the most sheets you will print will be 1,000 per minute. But,by investing in a second machine their printing company could double its capacity to 2,000 sheets per minute. Once the planing decision (for the long run purposes) has been made to operate with two machines, the firm in practice then operates in a new short run situation with its capacity constrained to 2,000 sheets per minute whether it employs 5,6 or 10 men. Decisions in the long-run are investment or plan ...

Word count: 330 | Approximate pages: 2

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